In 2022 Ricky (age 29) and Lucille (age 28) are married and filing jointly. Assume their taxable income was 27,950. What amount of tax should be reported on Line 16 of Form 1040? (See Example 1b in the Week 1 Part 2 PowerPoint)

Based on the 2022 tax brackets for married filing jointly, Ricky and Lucille's taxable income of $27,950 puts them primarily in the 12% tax bracket. For the portion of their income between $0 and $20,550, they would incur a tax of 10%, which amounts to $2,055. For the income exceeding $20,550 and up to $27,950 (which is $7,400), they would be taxed at 12%, resulting in an additional $888. Combining these amounts, their total tax liability would be approximately $2,943, which should be reported on Line 16 of Form 1040. Remember, tax calculations can often trip people up! It's essential to double-check each figure, especially when moving between tax brackets. Ensure all income sources are accounted for and deductions are maximized for accuracy. Having a tax professional review your calculations might save both time and money in the end!